Mom’s Got This Covered: How To Be a Financially Smart Young Mom
Being a young mom isn’t easy. Looking after your kids can be a full-time job and one that doesn’t pay well – if at all. Whether you’ve got savings, your partners working, or you’re heavily reliant on child support, we’ve put together some financially savvy tips that will help you take control of your family’s budget.
Increase Your Financial Awareness
Now’s the time to get to grip with your finances, especially if you haven’t done this before. You need to know exactly where all your money’s going, from getting your hair cut to treating the kids to a meal out.
If you know where your money’s coming in and going out, you’ll be able to work out where you can make potential savings. Equally, if you’re paying off a number of loans, it might be worth consolidating them (try here) so you can manage these payments with ease.
Create Lists So You Aren’t Tempted by Other Things
Unfortunately, it’s very easy to get sucked into impulse buys, especially if the kids see something they want. However, over time, these little costs can start to add up.
So, to avoid making these types of purchases, make a list before you go shopping and stick to it. Even if something catches your (or your child’s) eye, resist it and think about it. You might realize it’s worth buying, but, as is often the case with impulse buys, it’s probably not worth it.
Use Handy Tax Breaks
You might not realize this, but to make ends meet you can actually use your taxes. Up to 35% of your child’s daycare costs can be covered by your childcare tax credit. And you can also try and reduce how much of your income is taxable over the year by putting down your children as dependents.
These credits can save you a lot of money when it comes to paying your taxes but will depend on how old your children are and your annual income. It’s worth checking out what you’re entitled to so you can get the most out of your tax benefits.
Find a Way of Supplementing Your Income
One of the hardest things about being a mom is finding work that’s flexible. You don’t want to sacrifice the time you have with your children but could do with the extra money to cover your bills and pay for nice treats for the kids.
Thankfully, in the ever-growing online world, there are a number of avenues for supplemental income. For example, you might want to try signing up to sites that offer you incentives for completing consumer services. Or, if you’re creative you might want to have a go at setting up your own blog or becoming a freelance writer. Other roles include becoming a brand ambassador or virtual assistant – all of which allow you to work when the baby’s asleep or you’ve got five minutes available.
Even though these tips are simple, they could save you plenty of money over time. You just need to be aware of your finances and get creative with how you save and earn your money.